BG Group subsidiary QGC has officially taken over operational control at its Queensland Curtis LNG (QCLNG) plant, six months after first gas was achieved.

The transfer of operational control of train one from Bechtel Australia marks the start of commercial operations at QCLNG, located on Queensland’s Curtis Island.

First production from train one occurred in December 2014. Since then, 16 cargoes have been shipped to customers in Asia.

In addition, BG Group announced that approval for the sale of its QCLNG gas pipeline had been received from its train 1 equity partner, the China National Offshore Oil Company (CNOOC), satisfying preconditions for the US$4.5-US$5 billion sale of the pipeline to APA Group.

The sale of the pipeline remains on track for completion in the second quarter of 2015.

BG Group chief executive Helge Lund said it was pleasing to take control of QCLNG following its successful start-up and commissioning over the past six months.

“I would like to thank our partners Bechtel for building this world-first facility and helping to establish the LNG industry on the east coast of Australia,” he said.

“The cargoes from train 1, along with those from train 2 when it starts up later this year, will add flexibility to BG Group’s LNG portfolio.

“The transfer of operational control, and CNOOC’s approval, have also progressed our pipeline disposal, which we expect to complete in the coming weeks.”

APA Group, Australia’s largest natural gas infrastructure business, released a statement to the Australian market today noting BG Group’s announcement.

APA said it expected financial close for the QCLNG pipeline to occur in the first week of June.

The QCLNG project, which has been in construction since 2010, involved expanding exploration and development in southern and central Queensland and transporting CSG through a 540km underground pipeline network to Curtis Island where it will be liquefied for exports.

The QCLNG project will expand further with the start-up of the second train in the third quarter of 2015. At plateau production, expected during 2016, QCLNG will have an output of around 8 million tonnes of LNG a year.

The project is one of three CSG-to-LNG developments on Curtis Island. Origin Energy’s Australia Pacific LNG project and the Santos-led Gladstone LNG project are both due for start-up later this year.

Lauren Barrett can be reached at lbarrett@hartenergy.com

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